Question 1

Privity of contract refers to the fact that traditionally contracting parties alone have rights and liabilities under their contract.

Accepted Answer

A) True 
 B)False

Question 2

A life insurance contract is a third party benefi?ciary contract involving a donee beneficiary.

Accepted Answer

A) True 
 B)False

Question 3

A contract between Drill-Bit Sharpeners,Inc. ,and East Oil Mining Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

Accepted Answer

A)  any assignment.
B)  no assignment.
C)  only an assignment of contract rights to personal services.
D)  only an assignment that would change the obligor's risk.E) B) and C)
F) A) and C) A

Question 4

A "donee" beneficiary is a type of an "incidental" beneficiary.

Accepted Answer

A) True 
 B)False

Question 5

If a statute prohibits the assignment of certain rights,those rights cannot be assigned.

Accepted Answer

A) True 
 B)False

Question 6

To be enforceable,any assignment covered by the Statute of Frauds must be in writing.

Accepted Answer

A) True 
 B)False

Question 7

The person to whom rights in a contract are assigned is the assignee.

Accepted Answer

A) True 
 B)False

Question 8

A transfer of contract rights to a third party is a delegation.

Accepted Answer

A) True 
 B)False

Question 9

Fact Pattern 16-B1 
Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store,using products from Eagle Building Supplies.Fresh Food Café is next to Dewey's Home Store.
-Refer to Fact Pattern 16-B1.The value of Fresh Food's property will increase after Dewey's store is remodeled.Fresh Food is

Accepted Answer

A)  a delegatee.
B)  an assignee.
C)  an incidental beneficiary.
D)  an intended beneficiary.E) B) and C)
F) None of the above

Question 10

An assignment of a negotiable instrument is generally prohibited.

Accepted Answer

A) True 
 B)False

Question 11

George promises to repair Ford's boat dock in exchange for Efrem's promise to plant trees on George's property.This is

Accepted Answer

A)  a delegation.
B)  an assignment.
C)  a third party beneficiary contract.
D)  an alienation.E) A) and D)
F) A) and C) C

Question 12

A creditor beneficiary can sue the promisor directly for breach.

Accepted Answer

A) True 
 B)False

Question 13

An assignee's rights are subject to the defenses that the obligor has against the assignor.

Accepted Answer

A) True 
 B)False

Question 14

Jen is a third party beneficiary under a contract between Kyla and Leo.Kyla and Leo can modify or rescind their contract without Jen's consent

Accepted Answer

A)  at any time.
B)  at no time.
C)  after Jen's rights have vested.
D)  before Jen's rights have vested.E) A) and B)
F) B) and D)

Question 15

Bret and Cory enter into a contract for the sale of Bret's textbook at the end of the fall semester for which Cory agrees to pay Bret $60.Cory wants to transfer her right to payment for the book to Del.This transfer

Accepted Answer

A)  is prohibited.
B)  may be oral or written.
C)  must be implied.
D)  must be in writing.E) None of the above
F) A) and B)

Question 16

Fact Pattern 16-B1 
Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store,using products from Eagle Building Supplies.Fresh Food Café is next to Dewey's Home Store.
-Refer to Fact Pattern 16-B1.Halfway through the project,Bayside refuses to finish the job.The contract can be enforced against Bayside by

Accepted Answer

A)  Clio only.
B)  Clio or Dewey only.
C)  Clio,Dewey,or Eagle only.
D)  Clio,Dewey,Eagle,or Fresh Food.E) A) and B)
F) C) and D)

Question 17

Both intended and incidental beneficiaries acquire legal rights in a contract.

Accepted Answer

A) True 
 B)False

Question 18

An assignment is effective immediately,whether or not notice is given.

Accepted Answer

A) True 
 B)False  True

Question 19

Ron makes a contract with Stu that indirectly benefits Tim,although nei?ther Ron nor Stu intended that result.Tim is

Accepted Answer

A)  a delegatee.
B)  an assignee.
C)  an incidental beneficiary.
D)  none of the choices.E) B) and D)
F) A) and C)

Question 20

The assignment of the same contract right to two different parties automatically cancels both assignments.

Accepted Answer

A) True 
 B)False

Exam 16: B: Third Party Rights

Privity of contract refers to the fact that traditionally contracting parties alone have rights and liabilities under their contract.

Correct Answer
verified

A life insurance contract is a third party benefi?ciary contract involving a donee beneficiary.

Correct Answer
verified

A contract between Drill-Bit Sharpeners,Inc. ,and East Oil Mining Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

Correct Answer
verified
A

A "donee" beneficiary is a type of an "incidental" beneficiary.

Correct Answer
verified

If a statute prohibits the assignment of certain rights,those rights cannot be assigned.

Correct Answer
verified

To be enforceable,any assignment covered by the Statute of Frauds must be in writing.

Correct Answer
verified

The person to whom rights in a contract are assigned is the assignee.

Correct Answer
verified

A transfer of contract rights to a third party is a delegation.

Correct Answer
verified

Correct Answer
verified

An assignment of a negotiable instrument is generally prohibited.

Correct Answer
verified

George promises to repair Ford's boat dock in exchange for Efrem's promise to plant trees on George's property.This is

Correct Answer
verified
C

A creditor beneficiary can sue the promisor directly for breach.

Correct Answer
verified

An assignee's rights are subject to the defenses that the obligor has against the assignor.

Correct Answer
verified

Jen is a third party beneficiary under a contract between Kyla and Leo.Kyla and Leo can modify or rescind their contract without Jen's consent

Correct Answer
verified

Bret and Cory enter into a contract for the sale of Bret's textbook at the end of the fall semester for which Cory agrees to pay Bret $60.Cory wants to transfer her right to payment for the book to Del.This transfer

Correct Answer
verified

Correct Answer
verified

Both intended and incidental beneficiaries acquire legal rights in a contract.

Correct Answer
verified

An assignment is effective immediately,whether or not notice is given.

Correct Answer
verified
True

Ron makes a contract with Stu that indirectly benefits Tim,although nei?ther Ron nor Stu intended that result.Tim is

Correct Answer
verified

The assignment of the same contract right to two different parties automatically cancels both assignments.

Correct Answer
verified

Exam 16: B: Third Party Rights

Privity of contract refers to the fact that traditionally contracting parties alone have rights and liabilities under their contract.

Correct AnswerverifiedShow Answer

A life insurance contract is a third party benefi?ciary contract involving a donee beneficiary.

Correct AnswerverifiedShow Answer

A contract between Drill-Bit Sharpeners,Inc. ,and East Oil Mining Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

Correct AnswerverifiedA

A "donee" beneficiary is a type of an "incidental" beneficiary.

Correct AnswerverifiedShow Answer

If a statute prohibits the assignment of certain rights,those rights cannot be assigned.

Correct AnswerverifiedShow Answer

To be enforceable,any assignment covered by the Statute of Frauds must be in writing.

Correct AnswerverifiedShow Answer

The person to whom rights in a contract are assigned is the assignee.

Correct AnswerverifiedShow Answer

A transfer of contract rights to a third party is a delegation.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An assignment of a negotiable instrument is generally prohibited.

Correct AnswerverifiedShow Answer

George promises to repair Ford's boat dock in exchange for Efrem's promise to plant trees on George's property.This is

Correct AnswerverifiedC

A creditor beneficiary can sue the promisor directly for breach.

Correct AnswerverifiedShow Answer

An assignee's rights are subject to the defenses that the obligor has against the assignor.

Correct AnswerverifiedShow Answer

Jen is a third party beneficiary under a contract between Kyla and Leo.Kyla and Leo can modify or rescind their contract without Jen's consent

Correct AnswerverifiedShow Answer

Bret and Cory enter into a contract for the sale of Bret's textbook at the end of the fall semester for which Cory agrees to pay Bret $60.Cory wants to transfer her right to payment for the book to Del.This transfer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Both intended and incidental beneficiaries acquire legal rights in a contract.

Correct AnswerverifiedShow Answer

An assignment is effective immediately,whether or not notice is given.

Correct AnswerverifiedTrue

Ron makes a contract with Stu that indirectly benefits Tim,although nei?ther Ron nor Stu intended that result.Tim is

Correct AnswerverifiedShow Answer

The assignment of the same contract right to two different parties automatically cancels both assignments.

Correct AnswerverifiedShow Answer

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A

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C

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True

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